Stocks fall as European news disappoints

By STEPHEN BERNARD, AP Business Writer
| 7:17 a.m.Sept. 14, 2010

FILE - In this March 8, 2010 file photo, the semi-circular trading desk, lower left, of Cuttone & Co., is seen at the New York Stock Exchange. Stock futures inched lower Tuesday, Sept. 14, 2010, as investors put a rally on hold ahead of a new report on retail sales. (AP Photo/Mark Lennihan, file)
— AP

FILE - In this March 8, 2010 file photo, the semi-circular trading desk, lower left, of Cuttone & Co., is seen at the New York Stock Exchange. Stock futures inched lower Tuesday, Sept. 14, 2010, as investors put a rally on hold ahead of a new report on retail sales. (AP Photo/Mark Lennihan, file)
/ AP

NEW YORK 
Stocks opened lower Tuesday after weak news about European growth got investors worried about the economy again.

German investor confidence fell sharply in September and industrial production unexpectedly stagnated during July in the countries that use the euro. That sent shares lower in Europe, and U.S. stocks followed suit.

Meanwhile the Japanese yen hit another 15-year low against the dollar, which is bad for Japanese exporters. Japan's Nikkei stock average fell 0.2 percent, getting the global trading day off to a sluggish start. Treasury prices rose as investors went back to safe investments.

The pullback comes after a strong September, which is traditionally a bad month for stocks. The Dow Jones industrial average is still up 5 percent for the month, and has been on a nearly non-stop rally since the month began as investors shrugged off a case of the economic doldrums that had dogged the stock market for nearly all of August.

Analysts have been cautioning, however, that the September rally has come on very light volume, which can increase volatility in trading and is also a sign that many traders are still not participating in the market and may be skeptical that the gains can be sustained.

The Dow Jones industrial average fell 27.25, or 0.3 percent, to 10,516.88 in the first hour of trading.

Bond prices rose, driving down interest rates. The yield on the 10-year Treasury note, which moves opposite its price, fell to 2.71 percent from 2.75 percent late Monday. Its yield is used as a gauge to set interest rates on mortgages and other consumer loans.